AT&T; Will Cut Price of Interstate Calls by 2.2%
American Telephone & Telegraph Co. said Thursday that it will reduce its evening interstate long-distance rates by about 5% and daytime rates by about a half-percent Sunday as part of a $300-million overall price cut.
The company also will reduce the price of operator-assisted calls, calls to Canada and calls made under its Reach Out America plan.
Overall, if the Federal Communications Commission approves, interstate calling rates will fall an average of 2.2%, AT&T; spokesman Herb Linnen said.
The company will eliminate the one free call now allowed under its interstate directory service, meaning all such calls will cost 60 cents.
The cost of a 10-minute, direct-dialed call anywhere in the country will drop to $1.49--or less--from $1.58 between 5 p.m. and 11 p.m. Sunday through Friday.
AT&T;'s prices have dropped nearly 43% since the demise in 1984 of the old Bell system, primarily because of FCC-ordered reductions in local-access charges.
The FCC last week ordered local telephone companies to reduce by $1.1 billion, effective Sunday, what they charge long-distance companies to connect with their networks.
Long-distance carriers typically pass along to customers the savings from these reduced “access charges.”
Other long-distance companies, such as MCI and US Sprint, usually follow AT&T;'s lead in rate reductions.